The Union government has released the first instalment of the Fifteenth Finance Commission (XV FC) grants for the financial year 2024–25 to the Rural Local Bodies (RLBs) in Andhra Pradesh and Rajasthan.

“Andhra Pradesh has received untied grants amounting to Rs 395.5091 crore and tied grants totalling Rs 593.2639 crore. These funds are for duly elected 9 eligible District Panchayats, 615 eligible Block Panchayats, and 12,853 eligible Gram Panchayats in Andhra Pradesh.

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“While in Rajasthan, untied grants of Rs 507.1177 crore and tied grants of Rs 760.6769 crore have been released for the duly elected 22 eligible District Panchayats, 287 eligible Block Panchayats and 9,068 eligible Gram Panchayats in the state,” the Ministry of Panchayati Raj said on Saturday.

The untied grants will enable Panchayats to address specific local needs across 29 subjects under the Eleventh Schedule of the Constitution of India, ranging from agriculture and rural housing to education and sanitation. These funds, however, cannot be used for salaries or establishment costs.

The tied grants will focus on core services such as sanitation, maintenance of open-defecation free (ODF) status and water management, including rainwater harvesting, water recycling, and treatment of household waste.

In line with Article 243G of the Indian Constitution, these funds empower Panchayats to manage essential services and infrastructure. The provision of tied grants has presented a significant opportunity for Gram Panchayats to redefine local self-governance in alignment with Mahatma Gandhi’s vision of ‘Gram Swaraj’, fostering the development of responsible and responsive leadership at the grassroots level.

This empowerment process resonates with the Government’s guiding principle of ‘Sabka Saath, Sabka Vikas, Sabka Viswas, Sabka Prayas’ as articulated by Prime Minister Narendra Modi, emphasising a firm commitment towards achieving the goal of “Viksit Bharat”.

By enhancing local governance, these funds contribute to the inclusive growth and sustainable rural development, reinforcing India’s commitment to participatory democracy and village-level progress.

“The Government of India through the Ministry of Panchayati Raj and Ministry of Jal Shakti (Department of Drinking Water and Sanitation) recommends release of XV-FC Grants to States for Rural Local Bodies which are then released by the Ministry of Finance. The allocated Grants are recommended and released in 2 instalments in a financial year,” the Ministry said.